US construction spending falls 0.8 percent in August with widespread weakness in all sectors

In this photo made on Monday, Sept. 22, 2014, work continues at a construction site in Pittsburgh. The Commerce Department releases construction spending for August on Wednesday, Oct. 1, 2014. (AP Photo/Keith Srakocic)
(The Associated Press)

WASHINGTON – U.S. construction spending fell in August, the second decline in the past three months, with housing, non-residential and government projects all showing weakness.

The Commerce Department says construction spending dropped a seasonally adjusted 0.8 percent after a 1.2 percent increase in July. The July increase followed a 1.6 percent June decline.

The weakness was apparent in all sectors. Housing construction declined 0.1 percent, reflecting a big drop in spending on remodeling. Non-residential construction fell 1.4 percent while spending on government projects dropped 0.9 percent.

In addition to the August decline, the government revised lower its estimates for activity in the previous two months. This could call into question expectations that building activity will support economic growth in the second half of the year.